‘Finance bill 2024 must undergo radical surgery’- Raila proposes amendments on proposed law
Azimio la Umoja-One Kenya coalition party leader Raila Odinga has said that the proposed Finance Bill 2024 must be amended.
Raila in a statement on Friday, June 7, 2024, criticized that the tax burden in Kenya has reached its highest level since independence, but public services have largely remained on their knees.
Finance Bill on economy
Raila warned that if the proposed Finance Bill 2024 does not undergo amendments, the country will be in a worse status by next year.
"The tax burden in Kenya is at its highest level since independence, but public services have largely remained on their knees. As if this is not bad enough the Finance Bill 2024 proposes even more and higher taxes. Consequently, the people and the country will be way worse off at this time in 2025 if the Finance Bill 2024 does not undergo a radical surgery," Raila said.
The Orange Democratic Movement (ODM) party leader says the new Finance Bill fails the taxation dictums of predictability, simplicity, transparency, equity, administrative ease and fairness.
The tax burden in Kenya is at its highest level since independence, but public services have largely remained on their knees.
As if this is not bad enough the Finance Bill 2024 proposes even more and higher taxes.
It's a disaster in the making. pic.twitter.com/P9hxbeXyu9— Raila Odinga (@RailaOdinga) June 7, 2024
According to Raila, the Finance Bill 2024 is worse than the one that was proposed and subsequently passed in 2023.
"The Finance Bill 2024 fails the taxation dictums of predictability, simplicity, transparency, equity, administrative ease and fairness. It is worse than the one of 2023, an investment killer and a huge millstone around the necks of millions of poor Kenyans who must have hoped that the tears they shed over taxes last year would see the government lessen the tax burden in 2024," Raila said.
Low-income people
Raila further argues that low-income people will be hit with taxes on multiple fronts and will end up paying more than people with higher incomes should the proposed bill get ratified.
The former prime minister has also raised concerns that the cost of mobile money transfers is set to rise from last year's 15 per cent to 20 per cent.
Raila says most of the tax proposals in the Finance Bill 2024 are insensitive.
"Most of the tax proposals in the Finance Bill 2024 are as insensitive as they are callous. We see no positive result that the country which is a net importer of nearly everything can derive from the proposal to raise Import Declaration Fees from 2 per cent to 3 per cent. The impact is that the cost of goods will go up," Raila warned.
Double taxation
Moreover, Raila has raised concerns that the proposed 2.5 per cent tax on motor vehicles is a perfect case of double taxation, unfair and regressive taxation.
He also warns that the proposals in the proposed law could usher the collapse of an economy that is already severely suffocated, and the poor will be the hardest hit.
The tax proposals for 2024 will make an already bad situation worse. They could usher the collapse of an economy that is already severely suffocated, and the poor will be the hardest hit.
"If we expect business to invest in Kenya, then we cannot afford a tax policy shoot up and down and keeps swinging like a pendulum. We equally cannot afford taxation measures whose end result is to inflict more pain on the poor who expect relief. Parliament must therefore inject very radical surgery on the outrageous proposals in the Finance Bill 2024. We will not accept the mistakes and pains," Raila said.
For these and more credible stories, join our revamped Telegram and WhatsApp channels.
Telegram: https://t.me/peopledailydigital
WhatsApp: https://whatsapp.com/channel/0029Va698juDOQIToHyu1p2z
